Gateway Encryption Service for Consistent Payment Tokenization
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing payment systems fail to recognize transactions made using different forms of payment as belonging to the same customer and account, leading to inefficiencies such as unnecessary information storage, processor cycles, and network traffic due to outdated or incorrect card information, especially when a new card is issued.
Innovation Solution
A system using a gateway encryption service that generates and manages consistent tokens for payment accounts, ensuring that merchants receive the same token regardless of the payment method, thereby correlating transactions and updating information seamlessly when the primary account number changes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants store multiple payment forms for the same account, then payment flexibility is improved, but system complexity and information management overhead increase
Solution Approach 1:
The patent introduces a token as an intermediary that mediates between the merchant and the customer's payment account. Instead of storing multiple payment forms directly, the merchant stores a single token that represents the customer's account. This token acts as a mediator that can be redeemed for various payment forms, thus providing payment flexibility while simplifying information management at the merchant side.
2Quantity of substance
If merchants store outdated card information, then data retention is improved, but transaction reliability deteriorates due to failed transactions
Solution Approach 1:
The patent implements a feedback mechanism where the system monitors the status of stored tokens and automatically updates them when the underlying payment account changes. When a customer's payment account is updated (e.g., new card issued), the system detects this change and refreshes the corresponding token at the merchant, ensuring that stored information remains current without requiring manual intervention, thus maintaining both data retention and transaction reliability.
3Reliability
If the system processes each payment form as a separate transaction, then payment security is improved, but processing efficiency deteriorates due to unnecessary processor cycles
Solution Approach 1:
The patent merges multiple payment forms under a single unified token representation. Instead of processing each payment form as a separate transaction with full verification cycles, the system processes transactions through the unified token, which already embodies the necessary security credentials. This consolidation maintains payment security while eliminating redundant processing cycles, thereby improving overall processing efficiency.
Data Source
AI summary
A gateway encryption service is used to ensure consistent, source independent tokenization for payment accounts and synchronizing payment account information with merchants. A consistent, evergreen merchant-facing token is generated and used for each payment account for the merchant, ensuring that regardless of the payment method used by the customer (e.g., plastic card point-of-sale, pay wallet, saved card information) for the same underlying account, the merchant has a single token. Further, if the account number for the underlying payment account changes (e.g., the card expires or is stolen) the merchant-facing token remains consistent. The evergreen token ensures that the system functions more efficiently, saving resources in processing and storage and ensuring less network traffic for failed transactions. The system further implements encryption and security despite the consistent tokenization, further saving resources.